View Full Version : Don't understand why can't the Central Bank in Thailand print money.
1997 Asian financial crisis
From Wikipedia, the free encyclopedia
Jump to: navigation (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis#mw-head), search (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis#p-search)
http://upload.wikimedia.org/wikipedia/commons/thumb/d/d2/Asian_Financial_Crisis_EN-2009-05-05.png/350px-Asian_Financial_Crisis_EN-2009-05-05.png (http://en.wikipedia.org/wiki/File:Asian_Financial_Crisis_EN-2009-05-05.png) http://bits.wikimedia.org/static-1.20wmf4/skins/common/images/magnify-clip.png (http://en.wikipedia.org/wiki/File:Asian_Financial_Crisis_EN-2009-05-05.png)
The countries most affected by the 1997 Asian financial crisis.
The Asian financial crisis was a period of financial crisis (http://en.wikipedia.org/wiki/Financial_crisis) that gripped much of Asia (http://en.wikipedia.org/wiki/Asia) beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion (http://en.wikipedia.org/wiki/Financial_contagion).
The crisis started in Thailand (http://en.wikipedia.org/wiki/Thailand) with the financial collapse of the Thai baht (http://en.wikipedia.org/wiki/Thai_baht) after the Thai government was forced to float (http://en.wikipedia.org/wiki/Floating_currency) the baht (due to lack of foreign currency to support its fixed exchange rate), cutting its peg (http://en.wikipedia.org/wiki/Fixed_exchange_rate) to the U.S. dollar (http://en.wikipedia.org/wiki/U.S._dollar), after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven. At the time, Thailand had acquired a burden of foreign debt (http://en.wikipedia.org/wiki/Foreign_debt) that made the country effectively bankrupt even before the collapse of its currency. As the crisis spread, most of Southeast Asia (http://en.wikipedia.org/wiki/Southeast_Asia) and Japan (http://en.wikipedia.org/wiki/Japan) saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt (http://en.wikipedia.org/wiki/Private_debt).[1] (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis#cite_note-0)
Though there has been general agreement on the existence of a crisis and its consequences, what is less clear are the causes of the crisis, as well as its scope and resolution. Indonesia (http://en.wikipedia.org/wiki/Indonesia), South Korea (http://en.wikipedia.org/wiki/South_Korea) and Thailand (http://en.wikipedia.org/wiki/Thailand) were the countries most affected by the crisis. Hong Kong (http://en.wikipedia.org/wiki/Hong_Kong), Malaysia (http://en.wikipedia.org/wiki/Malaysia), Laos (http://en.wikipedia.org/wiki/Laos) and the Philippines (http://en.wikipedia.org/wiki/Philippines) were also hurt by the slump. The People's Republic of China (http://en.wikipedia.org/wiki/People%27s_Republic_of_China), Pakistan (http://en.wikipedia.org/wiki/Pakistan), India (http://en.wikipedia.org/wiki/India), Taiwan (http://en.wikipedia.org/wiki/Taiwan), Singapore (http://en.wikipedia.org/wiki/Singapore), Brunei (http://en.wikipedia.org/wiki/Brunei) and Vietnam (http://en.wikipedia.org/wiki/Vietnam) were less affected, although all suffered from a loss of demand and confidence throughout the region.
Foreign debt-to-GDP ratios rose from 100% to 167% in the four large Association of Southeast Asian Nations (http://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations) (ASEAN) economies in 1993–96, then shot up beyond 180% during the worst of the crisis. In South Korea, the ratios rose from 13 to 21% and then as high as 40%, while the other northern newly industrialized countries (http://en.wikipedia.org/wiki/Newly_industrialized_country) fared much better. Only in Thailand and South Korea did debt service-to-exports ratios rise.[2] (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis#cite_note-1)
Although most of the governments of Asia had seemingly sound fiscal policies (http://en.wikipedia.org/wiki/Fiscal_policies), the International Monetary Fund (http://en.wikipedia.org/wiki/International_Monetary_Fund) (IMF) stepped in to initiate a $40 billion program to stabilize the currencies of South Korea, Thailand, and Indonesia, economies particularly hard hit by the crisis. The efforts to stem a global economic crisis did little to stabilize the domestic situation in Indonesia, however. After 30 years in power, President (http://en.wikipedia.org/wiki/President_of_Indonesia) Suharto (http://en.wikipedia.org/wiki/Suharto) was forced to step down (http://en.wikipedia.org/wiki/Fall_of_Suharto) on 21 May 1998 in the wake of widespread rioting that followed sharp price increases caused by a drastic devaluation of the rupiah (http://en.wikipedia.org/wiki/Rupiah). The effects of the crisis lingered through 1998. In 1998 the Philippines growth dropped to virtually zero. Only Singapore and Taiwan proved relatively insulated from the shock, but both suffered serious hits in passing, the former more so due to its size and geographical location between Malaysia and Indonesia. By 1999, however, analysts saw signs that the economies of Asia (http://en.wikipedia.org/wiki/Economy_of_Asia) were beginning to recover.[ (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis#cite_note-2)
Allthepies
10-06-12, 17:36
yup dont understand too :D can someone well versed in this area explain to us layman how does money printing works and who can print money freely and why?
I was thinking if our government keep printing money to buy things for us, we dont have to work right? just print money to buy all the food and goods we need to feed the whole nation =)
They had too much foreign debt(USD).. ie not in Baht.... printing baht is not going to help.... will only make baht devalue even faster...:2cents:
US/Euro debt is in USD & euros... printing helps... by inflating themselves out of debt.... but print too much... leads to hyperinflation.... not good too:scared-3:
Allthepies
10-06-12, 19:47
They had too much foreign debt(USD).. ie not in Baht.... printing baht is not going to help.... will only make baht devalue even faster...:2cents:
US/Euro debt is in USD & euros... printing helps... by inflating themselves out of debt.... but print too much... leads to hyperinflation.... not good too:scared-3:
thanks for sharing! now i understand:cheers3:
I suppose it helps if u r, or collectively, a military superpower.
phantom_opera
10-06-12, 20:36
kekekeke ... Thailand is so small .. balance sheets of big 4 in USD (Trillion)
http://static.seekingalpha.com/uploads/2012/3/14/saupload_naamloos_3.png
Long long time ago, three wise men gather together and decided to open a bank each. They have a Gentlemen agreement to print just enough for their country and there are set of rule to follow.
The three wise men are Mr Europe, Mr USA, Mr Asia. Among the three wise men Mr USA is the most intelligent, he invent lot of thing and make lot of useful stuff and he grow rich and powerful. Mr Europe like to sit under the sun drink wine and have fun and Mr Asia like to work under the sun.
One day Mr USA grow tired of making useful stuff and decided that since Mr Asia is not that intelligent Mr USA start to get Mr Asia to make the useful stuff. Before long Mr Asia start to have lot of money. Mr USA also notice Mr Europe like to sit under the sun drink wine and have fun and Mr USA begin to dream of having Mr Europe Money and Mr Asia Money.
Can someone carry on the story.
OMG... where is all this coming from? :doh:
Even if you don't have any finance background, basic knowledge of how any currency works is easily obtainable from the internet with a bit of googling.
For a start, google 'Bretton Woods system"..... also google 'Nixon shock' to learn about how the US$ lost its gold backing in 1971 and why the Feds can print now as they like.
Long long time ago, three wise men gather together and decided to open a bank each. They have a Gentlemen agreement to print just enough for their country and there are set of rule to follow.
The three wise men are Mr Europe, Mr USA, Mr Asia. Among the three wise men Mr USA is the most intelligent, he invent lot of thing and make lot of useful stuff and he grow rich and powerful. Mr Europe like to sit under the sun drink wine and have fun and Mr Asia like to work under the sun.
One day Mr USA grow tired of making useful stuff and decided that since Mr Asia is not that intelligent Mr USA start to get Mr Asia to make the useful stuff. Before long Mr Asia start to have lot of money. Mr USA also notice Mr Europe like to sit under the sun drink wine and have fun and Mr USA begin to dream of having Mr Europe Money and Mr Asia Money.
Can someone carry on the story.
Opium Wars
The Opium Wars, also known as the Anglo-Chinese Wars, divided into the First Opium War (http://en.wikipedia.org/wiki/First_Opium_War) from 1839 to 1842 and the Second Opium War (http://en.wikipedia.org/wiki/Second_Opium_War) from 1856 to 1860, were the climax of disputes over trade and diplomatic relations between China (http://en.wikipedia.org/wiki/China) under the Qing Dynasty (http://en.wikipedia.org/wiki/Qing_Dynasty) and the British Empire (http://en.wikipedia.org/wiki/British_Empire). After the inauguration of the Canton System (http://en.wikipedia.org/wiki/Canton_System) in 1756, which restricted trade to one port and did not allow foreign entrance to China, the British East India Company (http://en.wikipedia.org/wiki/British_East_India_Company) faced a trade imbalance in favour of China and invested heavily in opium (http://en.wikipedia.org/wiki/Opium) production to redress the balance. British and United States (http://en.wikipedia.org/wiki/United_States) merchants brought opium from the British East India Company's factories in Patna (http://en.wikipedia.org/wiki/Patna) and Benares (http://en.wikipedia.org/wiki/Benares),[1] (http://en.wikipedia.org/wiki/Opium_Wars#cite_note-TANDJ-0) in the Bengal Presidency (http://en.wikipedia.org/wiki/Bengal_Presidency) of British India (http://en.wikipedia.org/wiki/British_India), to the coast of China, where they sold it to Chinese smugglers who distributed the drug in defiance of Chinese laws. Aware both of the drain of silver (http://en.wikipedia.org/wiki/Silver) and the growing numbers of addicts, the Daoguang (http://en.wikipedia.org/wiki/Daoguang) Emperor demanded action. Officials at the court, who advocated legalization of the trade in order to tax it were defeated by those who advocated suppression. In 1838, the Emperor sent Lin Zexu (http://en.wikipedia.org/wiki/Lin_Zexu) to Guangzhou (http://en.wikipedia.org/wiki/Guangzhou) where he quickly arrested Chinese opium dealers and summarily demanded that foreign firms turn over their stocks. When they refused, Lin stopped trade altogether and placed the foreign residents under virtual siege, eventually forcing the merchants to surrender their opium to be destroyed. In response, the British government sent expeditionary forces from India which ravaged the Chinese coast and dictated the terms of settlement. The Treaty of Nanking (http://en.wikipedia.org/wiki/Treaty_of_Nanking) not only opened the way for further opium trade, but ceded territory including Hong Kong (http://en.wikipedia.org/wiki/Hong_Kong), unilaterally fixed Chinese tariffs at a low rate, granted extraterritorial rights (http://en.wikipedia.org/wiki/Extraterritoriality) to foreigners in China which were not offered to Chinese abroad, a most favored nation (http://en.wikipedia.org/wiki/Most_favored_nation) clause, as well as diplomatic representation. When the court still refused to accept foreign ambassadors and obstructed the trade clauses of the treaties, disputes over the treatment of British merchants in Chinese ports and on the seas led to the Second Opium War and the Treaty of Tientsin (http://en.wikipedia.org/wiki/Treaty_of_Tientsin).[2] (http://en.wikipedia.org/wiki/Opium_Wars#cite_note-1)
These treaties, soon followed by similar arrangements with the United States and France (http://en.wikipedia.org/wiki/France), later became known as the Unequal Treaties (http://en.wikipedia.org/wiki/Unequal_Treaties#Treaties_imposed_on_China) and the Opium Wars as the start of China's "Century of humiliation (http://en.wikipedia.org/wiki/Century_of_humiliation)."
http://en.wikipedia.org/wiki/Opium_Wars
Vietnam War
The Vietnam War[A 3] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-22) was a Cold War (http://en.wikipedia.org/wiki/Cold_War)-era military conflict (http://en.wikipedia.org/wiki/Proxy_war) that occurred in Vietnam (http://en.wikipedia.org/wiki/Vietnam), Laos (http://en.wikipedia.org/wiki/Laos), and Cambodia (http://en.wikipedia.org/wiki/Cambodia) from 1 November 1955[A 1] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-start_date-0) to the fall of Saigon (http://en.wikipedia.org/wiki/Fall_of_Saigon) on 30 April 1975. This war followed the First Indochina War (http://en.wikipedia.org/wiki/First_Indochina_War) and was fought between North Vietnam (http://en.wikipedia.org/wiki/North_Vietnam), supported by its communist (http://en.wikipedia.org/wiki/Communism) allies, and the government of South Vietnam (http://en.wikipedia.org/wiki/South_Vietnam), supported by the United States (http://en.wikipedia.org/wiki/United_States) and other anti-communist (http://en.wikipedia.org/wiki/Anti-communism) countries.[25] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-27) The Viet Cong (http://en.wikipedia.org/wiki/Viet_Cong) (also known as the National Liberation Front, or NLF), a lightly armed South Vietnamese communist-controlled common front (http://en.wikipedia.org/wiki/Common_front), largely fought a guerrilla war (http://en.wikipedia.org/wiki/Guerrilla_warfare) against anti-communist forces in the region. The Vietnam People's Army (http://en.wikipedia.org/wiki/Vietnam_People%27s_Army) (North Vietnamese Army) engaged in a more conventional war (http://en.wikipedia.org/wiki/Conventional_warfare), at times committing large units into battle. U.S. and South Vietnamese forces relied on air superiority (http://en.wikipedia.org/wiki/Air_supremacy) and overwhelming firepower to conduct search and destroy (http://en.wikipedia.org/wiki/Search_and_destroy) operations, involving ground forces (http://en.wikipedia.org/wiki/Army), artillery (http://en.wikipedia.org/wiki/Artillery), and airstrikes (http://en.wikipedia.org/wiki/Airstrike).
The U.S. government viewed involvement in the war as a way to prevent a communist (http://en.wikipedia.org/wiki/Communist) takeover of South Vietnam as part of their wider strategy of containment (http://en.wikipedia.org/wiki/Containment). The North Vietnamese government and Viet Cong viewed the conflict as a colonial war (http://en.wikipedia.org/wiki/Colonial_war), fought initially against France (http://en.wikipedia.org/wiki/France), backed by the U.S., and later against South Vietnam, which it regarded as a U.S. puppet state (http://en.wikipedia.org/wiki/Puppet_state).[26] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-28) American military advisors (http://en.wikipedia.org/wiki/Military_advisor) arrived in what was then French Indochina (http://en.wikipedia.org/wiki/French_Indochina) beginning in 1950. U.S. involvement escalated in the early 1960s, with troop levels tripling in 1961 and tripling again in 1962.[27] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-29) U.S. combat units (http://en.wikipedia.org/wiki/Military_organization) were deployed beginning in 1965. Operations spanned international borders, with Laos and Cambodia heavily bombed. American involvement in the war peaked in 1968, at the time of the Tet Offensive (http://en.wikipedia.org/wiki/Tet_Offensive). After this, U.S. ground forces were gradually withdrawn as part of a policy known as Vietnamization (http://en.wikipedia.org/wiki/Vietnamization). Despite the Paris Peace Accords (http://en.wikipedia.org/wiki/Paris_Peace_Accords), signed by all parties in January 1973, fighting continued.
U.S. military involvement ended on 15 August 1973 as a result of the Case–Church Amendment (http://en.wikipedia.org/wiki/Case%E2%80%93Church_Amendment) passed by the U.S. Congress.[28] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-30) The capture of Saigon (http://en.wikipedia.org/wiki/Fall_of_Saigon) by the Vietnam People's Army in April 1975 marked the end of the war, and North and South Vietnam were reunified the following year. The war exacted a huge human cost in terms of fatalities (see Vietnam War casualties (http://en.wikipedia.org/wiki/Vietnam_War_casualties)). Estimates of the number of Vietnamese soldiers and civilians killed vary from less than one million[29] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-31) to more than five million.[7] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-AFPCivilian-7)[30] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-32) Some 200,000–300,000 Cambodians (http://en.wikipedia.org/wiki/Khmer_people),[17] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-Heuveline.2C_Patrick_2001-18)[18] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-Marek_Sliwinski_1995-19)[19] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-Banister.2C_Judith_1993-20) 20,000–200,000 Laotians (http://en.wikipedia.org/wiki/Lao_people),[31] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-33)[32] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-34)[33] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-35)[34] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-36)[35] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-37)[36] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-38) and 58,220 U.S. service members also died in the conflict.[A 2] (http://en.wikipedia.org/wiki/Vietnam_War#cite_note-USd.26w-13)
http://upload.wikimedia.org/wikipedia/commons/thumb/3/32/China_imperialism_cartoon.jpg/445px-China_imperialism_cartoon.jpg
The Eight-Nation Alliance (simplified Chinese: 八国联军; traditional Chinese: 八國聯軍; pinyin: bāguó liánjūn) was an alliance of Austria-Hungary, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States whose military forces intervened in China to suppress the anti-foreign Boxers and relieve the siege of the diplomatic legations in Beijing (Peking).
http://en.wikipedia.org/wiki/Eight-Nation_Alliance
http://upload.wikimedia.org/wikipedia/commons/thumb/1/10/BoxerTroops.jpg/800px-BoxerTroops.jpg
http://www.defence.pk/forums/genera...india.html (http://www.defence.pk/forums/general-images-multimedia/134113-what-india-1835-how-british-destroyed-india.html)
http://nitawriter.wordpress.com/2006/12/28/british-rule-in-india-and-nazi-rule-what-is-the-difference/ (http://nitawriter.wordpress.com/2006/12/28/british-rule-in-india-and-nazi-rule-what-is-the-difference/)
http://news.bbc.co.uk/2/hi/south_asia/7460682.stm
British Rule in India and Nazi rule. What is the difference?
December 28, 2006
tags: British Rule
Indian History books teach the pros and cons of British rule
The subject of British rule in India is an emotional one for most Indians but even those Indians who are aware that Britain plundered India and treated locals as sub-humans and killed the indigenous industry, reluctantly admit that Britain did build infrastructure and made English popular in India. Guess if it wasn’t for British rule all those years ago I wouldn’t be writing this very piece in English, would I? And well, Britain did unite all those little kingdoms and gave all of us a pan Indian identity.
But if most Indians believe that British rule did some good (not everyone agrees about the high price paid) I think the credit is due to the way we were taught history. The advantages of British rule were clearly brought out.
Britain apparently teaches a biased view of the British Raj
What surprised me was a front page report in today’s Times of India (Mumbai). It said that British school children are not taught the evil aspects of British rule – in fact there is a controversy going on in Britain right now about teaching school-children about Jallianwala Bagh, where hundreds of peacefully protesting Indians were massacred (including women and children). It’s difficult to understand why Britain wants to brush this under the carpet..after all if German school children can be taught about the evils of Nazi rule, why can’t British school-children be taught about the evils of British rule in India? Sure, the Nazis did more damage in a short period of time and killed millions of Jews.
But who has calculated the damage that Britain did? Are there any records of the number of Indians killed and enslaved by the British during the British Raj? Are there any records of ill-treatment meted out on a regular basis to the Indians? Has anyone calculated the economic damage caused to India because of the East India Company and British rule? Ofcourse not.
Britain does not want to know..........
http://a3.sphotos.ak.fbcdn.net/hphotos-ak-snc6/61189_1518830884726_1053141276_31568324_1512541_n.jpg http://newsimg.bbc.co.uk/media/images/44762000/jpg/_44762780_44760372.jpg
I think you better re-title thread, quite mis-leading.
http://www.tudou.com/programs/view/FVz_80UwhlM/
http://v.youku.com/v_show/id_XMTMzODc0NTAw.html
Allthepies
11-06-12, 07:59
oh no, the more u recapped, the more i see war is the ultimate end if the wolf in sheep clothings nations dont resolve their economic problems soon enough!
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.